MORE HEADLINES
Economic Update
Current estimates indicate the budget deficit will surpass $1.8 trillion in 2009.
Domestic Equity
May marked the third consecutive monthly gain for the S&P 500 Index.
International Equity
Most emerging market currencies strengthened against the U.S. dollar.
Fixed Income
Investors grew more confident in the viability of the financial sector.
Real Estate Securities
Real estate investment trusts (REITs) underperformed the broad equity market.
Hedge Funds
Hedge funds enjoyed their strongest performance in nearly a decade.
REBALANCING STRATEGIES IN A BEAR MARKET
The dislocation in the markets left many investors with asset allocations that were significantly different from long-term strategic targets. As a result, investors are considering their long-term strategic and short-term tactical portfolio allocations amid the recent market rally that followed the precipitous declines of 2008. Whether there is a retreat to or beyond previous lows or the market maintains or improves upon the current price level is subject to an unknown future. Investors must not only consider the potential for returns with the resumption of risk taking in the markets, but also the effect of costs and volatility, the rebalancing strategy to be employed, and the implications of that strategy to investors’ goals.
